DHHS awards $22M contract to Oklahoma Foundation for Medical Quality Inc. for management consulting

Contract Overview

Contract Amount: $22,086,690 ($22.1M)

Contractor: Oklahoma Foundation for Medical Quality Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2011-08-01

End Date: 2014-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $20.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: QIO 10TH SOW AWARD FOR THE STATE OF OKLAHOMA

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73134

State: Oklahoma Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $22.1 million to OKLAHOMA FOUNDATION FOR MEDICAL QUALITY INC for work described as: QIO 10TH SOW AWARD FOR THE STATE OF OKLAHOMA Key points: 1. Contract awarded for Other Management Consulting Services, indicating a need for specialized expertise. 2. The contract duration of 1095 days suggests a significant, ongoing project. 3. Awarded by the Centers for Medicare and Medicaid Services, highlighting a focus on healthcare program support. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The lack of competition raises questions about potential value for money and market responsiveness. 6. The contractor's location in Oklahoma may indicate a focus on regional or state-level program implementation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee structure inherently carries risks of cost escalation, as the contractor is reimbursed for allowable costs plus a fixed fee. Without insight into the specific services rendered and their effectiveness, it's difficult to definitively assess value for money. However, the fixed fee component provides some incentive for cost control compared to pure cost-plus contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when there is an urgent need that cannot be met through a competitive process. The lack of competition limits the government's ability to leverage market forces to achieve the best possible pricing and service.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are likely the Centers for Medicare and Medicaid Services, which receive management consulting support to enhance its operations. Services delivered include Other Management Consulting, which could encompass a wide range of support functions for healthcare programs. The geographic impact is centered in Oklahoma, where the contractor is based, suggesting potential for localized program support or administration. Workforce implications are primarily within the contractor's organization, but may also involve federal personnel interacting with the consulting team.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Cost Plus Fixed Fee structure carries inherent risk of cost escalation.
Limited transparency due to sole-source award.

Positive Signals

Contract awarded to a specific entity, suggesting a perceived need for their unique expertise.
Fixed fee component provides some cost control incentive.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically management consulting. This sector is characterized by a wide range of specialized firms offering expertise in areas such as operational efficiency, strategic planning, and program management. The market size for federal management consulting is substantial, with agencies frequently outsourcing complex tasks to leverage external knowledge and capacity. This contract represents a portion of the government's investment in professional services to support its vast operational needs.

Small Business Impact

There is no indication that this contract involved small business set-asides. As a sole-source award, it bypasses the typical competitive processes where small businesses might have opportunities to bid or subcontract. The impact on the small business ecosystem is likely minimal for this specific award, as it was not designed to promote small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Centers for Medicare and Medicaid Services. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Medicare Program Administration
Medicaid Program Support
Healthcare Consulting Services
Federal Management Consulting Contracts

Risk Flags

Sole-source award lacks competitive justification.
Cost Plus Fixed Fee structure poses cost overrun risk.
Limited transparency in procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $22.1 million to OKLAHOMA FOUNDATION FOR MEDICAL QUALITY INC. QIO 10TH SOW AWARD FOR THE STATE OF OKLAHOMA

Who is the contractor on this award?

The obligated recipient is OKLAHOMA FOUNDATION FOR MEDICAL QUALITY INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $22.1 million.

What is the period of performance?

Start: 2011-08-01. End: 2014-07-31.

What specific management consulting services were provided under this contract?

The contract data indicates 'Other Management Consulting Services' were procured. Without access to the detailed Statement of Work (SOW) or task orders, the precise nature of these services remains unspecified. This could range from strategic planning and organizational analysis to process improvement, policy development support, or operational efficiency assessments for the Centers for Medicare and Medicaid Services (CMS). The broad categorization suggests flexibility in the services rendered, tailored to CMS's evolving needs during the contract period (2011-2014).

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The CPFF structure reimburses the contractor for allowable costs plus a predetermined fixed fee, representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, providing flexibility. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the contractor is incentivized to incur costs to perform the work, while their profit is fixed. For management consulting, fixed-price contracts might be preferred if the scope is very well-defined, offering better cost certainty for the government. Other cost-reimbursement types, like Cost Plus Incentive Fee (CPIF), could offer better alignment of incentives if performance metrics are clearly established.

What are the potential risks associated with a sole-source award for management consulting services?

Sole-source awards, like this one, bypass the competitive bidding process, which is a primary mechanism for ensuring fair and reasonable pricing and identifying the best value. Key risks include paying a premium price due to the lack of competition, potentially receiving services that are not optimally aligned with the government's needs if alternatives were not explored, and reduced transparency in the procurement process. It also limits opportunities for other qualified firms to demonstrate their capabilities and potentially offer innovative solutions. For management consulting, where expertise can vary significantly, competition is crucial for selecting the most effective provider.

What was the contractor's track record or specific expertise that justified a sole-source award?

The provided data does not include information on the contractor's specific track record or the justification for the sole-source award. Typically, sole-source justifications are documented and approved by the procuring agency, citing reasons such as unique capabilities, proprietary technology, urgent and compelling needs, or the unavailability of other sources. Without this documentation, it is impossible to assess whether the contractor's specific expertise was indeed essential and justified bypassing competition for this $22 million contract.

How did the spending on this contract compare to overall CMS spending on management consulting during the award period?

To compare this contract's spending ($22.09 million over approximately three years) to overall CMS spending on management consulting, one would need access to CMS's historical contracting data for the fiscal years 2011 through 2014. CMS is a massive agency with a substantial budget, and management consulting services are often utilized across various program areas. This $22 million award, while significant in absolute terms, might represent a relatively small fraction of CMS's total consulting expenditures during that period. A comprehensive analysis would require aggregating all similar contract awards made by CMS during the same timeframe.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: MEDICAL SERVICES › DEPENDENT MEDICARE SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: CMS10THSOW

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 14000 QUAIL SPRINGS PKWY STE 400, OKLAHOMA CITY, OK, 73134

Business Categories: Category Business, Corporate Entity Tax Exempt, Foundation, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,086,690

Exercised Options: $22,086,690

Current Obligation: $22,086,690

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline